PowerPoint Presentation PPT #12 Instructions for Homework #3 Creating a storyboard About a company’s stock price There are links to videos in this PowerPoint file. In order for the links to work...

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PowerPoint Presentation PPT #12 Instructions for Homework #3 Creating a storyboard About a company’s stock price There are links to videos in this PowerPoint file. In order for the links to work correctly, you must download this PowerPoint presentation file to your computer, open this file using the PowerPoint program, view this file in slideshow view. To go into slideshow view, on the menu, click [Slide Show], [from beginning]. When you land on a slide that has a link to a video, you will be able to click on that link to play the video. Introduction One important KPI for many companies is their stock price. Theoretically speaking, the trading price of a company stock is equal to (or exceeds) the “cash flows” paid to stockholders. Example: You want to buy 100 shares of APPLE (APPL). Will you pay $100 a share? Yes, if you think that dividend (Yr1) + dividend(Yr2)….+ dividend(yr N) + appreciation in share price is greater than $100: IS $10 + $10 + $11 + ….+ $12 + ($125-100=$25) > $100? In short, when the stock price goes up, investors believe that the companies annual profits will be increasing, so the stock price is a “measure of health” of the company. That makes it a good choice for a KPI. Stock Exchanges Stocks are traded on stock exchanges. Here are some of the biggest stock exchanges in the world: New York Stock Exchange (NYSE) NASDAQ Stock Exchange (NASQ) London Stock Exchange Bombay Stock Exchange Stocks are traded on stock exchanges. Here are some of the biggest stock exchanges in the world: New York Stock Exchange (NYSE): To be listed on the NYSE, a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years. NASDAQ Stock Exchange (NASQ): To be listed on the NASQ company must have issued at least 1.25 million shares of stock worth at least $70 million and must have earned more than $11 million over the last three years. London Stock Exchange Bombay Stock Exchange 3 Stock Prices are often compared to indices An index is a benchmark that a stock price can be compared to. Examples: Dow Jones Industrial Average (DJIA), S&P 500, Nasdaq (NASQ) Industry-specific indices: Example: the “Dow Jones Transportation index” is the benchmark for transportation company stocks such as Delta Airlines, FedEx, Norfolk Southern Corp. An individual company’s stock price is often compared to indices to see if it is doing better than average, average, or worse than average. We can compare the price of Apple stock to the Nasdaq index. Note: NASDAQ is both a stock exchange and an index An index is a benchmark that a stock price can be compared to. The Dow Jones Industrial Average (DJIA), the S&P 500, the Nasdaq are examples of indices. There are also industry-specific indices. For example, the “Dow Jones Transportation index” is the benchmark for transportation company stocks such as Delta Airlines, FedEx, Norfolk Southern Corp. An individual company’s stock price is often compared to an indices to see if it is doing better than average, average, or worse than average. We can compare the price of Apple stock to the Nasdaq index. Note: NASDAQ is both a stock exchange and an index 4 Example of a Stock Price Visualization We will get financial data from Yahoo finance Step 1 Video: Get the data (historical stock prices) Select any company that is publicly held (so it has a published stock price). Do not select Apple since that is the company that I used in my example herein. Go to the Yahoo finance site and download the following data to spreadsheets: Your company’s daily adjusted closing prices and trading volumes for the last three months. Your company’s month-end adjusted closing prices for the last two years. A competitor’s month-end adjusted closing price for the last two years. A stock market index month-end adjusted closing price such as the DJIA, Nasdaq, or S&P 500) for the last two years. If your company’s stock trades on the Nasdaq, you should use the Nasdaq index. Step 2 Video: Create a visualization for your dashboard Combine all the columns with daily prices into one Excel worksheet. Combine all the columns with the month-end prices into another worksheet. Make sure the dates are aligned by rows. You can delete the columns that you won’t be using (such as the high and the low prices). Using Tableau, create the four charts that are similar to the four charts that you will see in my example on the next four slides. Using Tableau, create a storyboard that consists of 4 “pages” – similar to the example on the fifth slide. All charts should have complete titles and axis labels. Add annotations and/or data labels to clarify what values are being plotted. Limit Y-axis ranges. In most cases, it will not be necessary to start the Y-axis range with 0. Increase the lower limit to a value closer to the minimum value in the data series to be plotted. On the storyboard, provide explanation for what is happening on each page in the scrolling boxes. Chart #1: Daily Adjusted Closing Price for the last three months with trend line Interpretation Completely descriptive chart title Axes Titles Data labels for high and low Y-axis range narrowed to accentuate fluctuations in stock price ($150-$185) Chart #2: Daily Adjusted Closing Prices and daily trading volumes for your company for last 3 months Stock prices Trading Volumes Chart #3: Month-end adjusted closing price for last two years– your company vs competitor My company Stock prices Competitor’s Stock Prices Chart #4: Month-end adjusted closing price for last two years– your company vs stock market index 2. Make a Story Board 1 2 3 4 Step #3 Save the entire workbook as a PDF file. Make sure you save the entire Tableau workbook to the PDF – not just the first sheet. Upload PDF file to Homework #3 Dropbox Rubric for grading homework #3 Point Value 4 charts14 points each16 1 story board24 points4 Was the assignment turned in on time?-1/day Total points: 20 1Charts must plot the data correctly, have complete titles, descriptive axes labels, comment box with explanation, and data labels if appropriate. 2Story board must contain all four charts and include short explanations in the sheet selection boxes